A.N.
We have a Sony CX160 (a year old, so they probably have a different one out now) that is awesome. It is super small and light, and has great video quality. I also like that it has internal memory (16mb) and I can also put in an SD card for added space. It fell off the back of our car (we were videoing and the mount wasn't quite right) going about 30 mph, it now has some damage (a bit squished on one side beside the lens, not sure how that didn't break), but it still works and the video looks just as good as before. Most video cameras couldn't do that.
I also know that the GoPro is supposed to be awesome. My husband just got one at work, and now I want one because it is waterproof in its case. That is more for action videos, not sure how it would be for just holding like a video camera (it is pretty small), normally you would probably mount it.
Look at reviews for the cameras in your price range or suggested by others, that is really the best way to find out if a product has consistent quality.